22 April 2008 13:52 [Source: ICIS news]
SINGAPORE (ICIS news)--S-OIL posted a 17.4% fall in first-quarter operating profit to won (W) 320bn ($321m) from W387bn, and a 54% plunge in income before tax figures to W165bn from W358bn year-on-year, the major South Korean refiner said on Tuesday.
Its petrochemical business segment’s operating income tumbled 90.9% to W6.2bn from W68bn in the previous corresponding period, while its lube sectors saw a 37% slip in operating income to W54bn from W86bn in 2007.
The firm’s refining sector was the only sector that posted positive growth figures, with operating income up 11.3% to W260bn from W233bn.
The company did not provide any specific reasons for its first-quarter performance, but said that it expects its second half 2008 refining business earnings to be driven by robust demand due to greater transportation fuel consumption in US and China, as well as strong fuel oil demand for power generation purposes in China and Japan.
The firm predicts stronger seasonal demand for paraxylene (PX) from purified terephthalic acid (PTA) producers in its petrochemical sector, as well as a tight demand and supply situation in its lube sector in the second quarter.
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